Self-Study Problem 12.3

Part a:

Linda filed her tax return 2 months late. The tax paid with the return amounts to $3,000. What is Linda's total penalty for failure to file and failure to pay, assuming the failure to file is not fraudulent? $__________

Part b:

Kim underpaid her taxes by $10,000 due to negligence. What is Kim's penalty for negligence? $_________

Part c:

Using the same information as in Part b, what is the amount of the penalty if the underpayment was determined to be due to civil fraud? $_________